SEC Division of Investment Management staff letter: Ameriprise Financial Services Inc.

March 24, 2006
Associate Director and Chief Counsel
DIVISION OF INVESTMENT MANAGEMENT
SECURITIES AND EXCHANGE COMMISSION
100 F Street NE
Washington, DC 20549
Re: Ameriprise Financial Services, Inc.
Dear Mr. Scheidt:
Ameriprise Financial Services, Inc. (“Ameriprise”) respectfully requests the Staff’s assurance that the Division of Investment Management would not recommend an enforcement action to the Commission under Rule 206(4)-3, 17 C.F.R. § 275.206(4)-3 (“Rule”) promulgated under the Investment Advisers Act of 1940, (“Act”) if in the context of certain direct marketing solicitations, Ameriprise delivers its Brochure (defined below) at the initial in￾person meeting with a prospective client as more fully described in this letter. As described in detail below, Ameriprise proposes to provide prospective clients contacted through direct marketing solicitations with a concise disclosure at the time of the initial solicitation, which will alert prospective clients that the solicitor receives a fee from Ameriprise for introducing Ameriprise to its customers. If a prospective client responds to an offer for certain free financial services information, such as retirement guides or money management workbooks (“financial services information” or “Fulfillment Package”), Ameriprise proposes to deliver the solicitor’s disclosure statement (defined below) with the information. In connection with an offer for a free initial in-person meeting, Ameriprise proposes to provide prospective clients with the Brochure at their first in-person meeting. The proposed approach provides prospective clients with reasonable notice of the solicitor’s incentives to refer clients to Ameriprise given the limited and attenuated nature of the solicitation, and is consistent with both the policies underlying the rule and the Staff’s prior no-action positions.
I. BACKGROUND
Ameriprise is an investment adviser registered under the Act and a former indirect wholly-owned subsidiary of American Express Company. Ameriprise provides a wide variety of personal financial advisory services to individuals. These services include, among other things:

1. analyzing and evaluating an individual’s current financial status and attitude toward
   investment risk, 2) developing and presenting financial planning recommendations, and 3) implementing and monitoring the financial planning recommendations. #242020v1